Buying and selling stocks in India involves using a trading account linked to a demat account through a stockbroker. To buy stocks, you first need to open both a demat and trading account. Once these accounts are active, you can place orders to buy or sell shares through your broker’s platform. Your order is then sent to the stock exchange where it gets matched with a seller or buyer. Once the trade is executed, shares are credited or debited from your demat account, and money is transferred accordingly.
How do you buy stocks in India?
To buy stocks, you first open a trading and demat account with a stockbroker. After adding funds to your trading account, you search for the stock you want to buy on the broker’s platform. You place a buy order specifying the quantity and price (market or limit order). When your order matches a seller’s order on the stock exchange, the trade gets executed. The stocks are then credited to your demat account.
It is important to research the company before buying shares and understand the market price trends to buy at the right time.
How do you sell stocks in India?
To sell stocks, you log into your trading account and select the stocks you want to sell from your demat holdings. You place a sell order mentioning the quantity and price. When your sell order matches a buyer’s order on the exchange, the trade is completed. The stocks are debited from your demat account, and the money is credited to your trading account, which you can then transfer to your bank.
Selling shares at the right time requires understanding market conditions and the company’s performance to maximize returns.
What is a demat account and why is it needed?
A demat account holds your shares in electronic form, making buying and selling stocks easy and safe. Without a demat account, you cannot trade stocks in India. When you buy stocks, they get credited to your demat account, and when you sell, they get debited from it. It works like a bank account but for shares.
This account helps avoid the risks of losing physical share certificates and makes trading faster and smoother.
What role does a stockbroker play?
A stockbroker is a registered intermediary who helps you buy and sell shares on stock exchanges like NSE and BSE. You need to open a trading and demat account through a broker. The broker provides the platform and tools for trading and ensures your orders reach the exchange safely. Brokers also provide support, advice, and research to help you trade better.
Choosing a reliable and low-cost broker is important for smooth trading and reducing charges.
What are market orders and limit orders?
When buying or selling stocks, you can choose a market order or a limit order. A market order means your trade happens immediately at the current market price. A limit order means you set a price at which you want to buy or sell, and the trade happens only if the stock reaches that price.
Market orders are faster but may have price variations. Limit orders give control over price but may take longer or may not get executed if the price doesn’t match.
How do stock prices get determined?
Stock prices in India are determined by supply and demand on stock exchanges. If many investors want to buy a stock, its price goes up. If more investors want to sell, the price goes down. Prices also depend on company performance, news, economy, and market sentiment.
Prices change every second during market hours as buy and sell orders come in, making stock trading dynamic and fast.
Contact Angel One Support at 7748000080 or 7771000860 for mutual fund investments, demat account opening, or trading queries.
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